Posted: Sun 10:15 AM, Nov 24, 2002
Reporter: Associated Press
Updated: Mon 9:01 AM, Nov 25, 2002

Attorney General Warns of A Pyramid Scheme

State Attorney General Carla Stovall has a message for a Pennsylvania-based gas discount card program: Take your business elsewhere.

Stovall, and Sedgwick County District Attorney Nola Foulston, say the Gas-Up-USA plan promotes a pyramid scheme that is not legal. That conclusion comes after a recent joint investigation by their offices.

Gas-Up-USA says members save money by paying a $150 membership fee and then purchasing prepaid gas debit cards.

The company also touts other benefits such as savings on prescription drugs, hospital plans and online legal advice.

Investigators say the company has failed to prove any savings. They also say the business is a pyramid scheme because it promises investment returns, in exchange for recruiting new members.

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